(a) Rates for
purchases shall:
(1) Be just and reasonable
to the electric consumer of the electric utility and in the public
interest;
(2) Not discriminate
against qualifying cogeneration and small power production facilities;
and
(3) Be not less than one
hundred per cent of avoided cost for energy and capacity purchases to be
determined as provided in §
6-74-23 from qualifying facilities and not
less than the minimum purchase rate.
(b) There shall be placed into effect with
respect to each electric utility, standard rates for purchases from qualifying
facilities with a design capacity of one hundred kilowatts or less. The
standard rates for purchases under this subsection:
(1) Shall be consistent with subsection (a)
and §
6-74-23; and
(2) May
differentiate among qualifying facilities using various technologies on the
basis of the supply characteristics of the different technologies.
(c) Each qualifying facility shall
have the option either:
(1) To provide energy
as the qualifying facility determines that energy to be available for those
purchases, in which case the rates for such purchases shall be based on the
purchasing utility's avoided energy costs calculated at the time of delivery,
determined after consideration of the factors set forth in §
6-74-23;
or
(2) To provide energy or
capacity pursuant to a legally enforceable obligation for the delivery of
energy or capacity over a specified term, in which case the rates for those
purchases, at the option of the qualifying facility exercised prior to the
beginning of the specified term, shall be based on either:
(A) The avoided costs calculated at the time
of delivery, determined after consideration of the factors set forth in §
6-74-23; or
(B) The avoided costs
calculated at the time the obligation is incurred, determined after
consideration of the factors set forth in §
6-74-23.
As used in this subsection:
"Calculated at the time of delivery" means calculated using
the basic projections and assumptions used to develop the system cost data
provided by an electric utility pursuant to §§ 6-74-17 and 6-74-18 most closely preceding the actual time of delivery; and
"Calculated at the time the obligation is incurred" means
calculated using the basic projections and assumptions used to develop the
system cost data provided by an electric utility pursuant to §§6
74-17 and 6-74-18 most closely preceding the
effective date of any legally enforceable obligation for
purchase.
